Life Insurance Needs Analysis Worksheet - Mike Russ

1 Final ExpensesEmergency FundsMortgage BalanceOther LoansEducation (Estimated Costs)Total Current Cash NeedsRequired Monthly IncomeCash Reserve FactorTotal Cash Reserve RequiredTotal Current & Long Term Cash NeedsCash & SavingsSecuritiesIRA, Keogh, 401(k) and PensionLife Insurance InforceOther AssetsTotal AssetsTotal life Insurance NeededLife Insurance Needs Analysis Worksheet # of Years10 life Insurance Needs WorksheetThis Worksheet can help you determine how much life Insurance you need. The letters in the left column correspond with the explanations below. Just complete the boxes to the left and it will automatically figure how much life Insurance you should CASH to & LONG TERM CASH NEEDSLIFE Insurance NEEDSEGR equired Monthly IncomeTo determine how much monthly income you need, take 70% of your annual net (take-home) pay and divide it by 12 months.

2 Example: $30,000 annual income x .70 / 12 = $1,750 of monthly Reserve FactorDivide the total monthly income you require by the appropriate factor listed below. You should select the factor that corresponds to the number of years you will need to provide monthly income for your family. Example: If you determine that your family Needs $2,500 per month for the next 20 years, then: $2,500 / .004573 = $546,687. This is a time-value Analysis to determine future cash Needs assuming a 3% annual increase in inflation and a 4% return on the lump sum death LoansTotal of all outstanding debts (principal), cush as auto loans, personal loans, credit card balances, ExpensesThis incudes probate costs, funeral expenses (actual funeral expenses may be $5,000 - $10,000) and medical costs for any bills your health policy does not cover (deductible plus any co- Insurance .)

3 BEmergency FundsSome Financial Experts recommend that you have up to six months salary for any household or personal emergency that may arise. Your emergency fund can be larger or smaller, depending on your family's BalanceIt is a good idea to select a life Insurance benefit large enough to pay off the existing mortgage - Estimated Current College CostsFigure the future total college expenses for your children. On average, the current cost is $22,533 per year per child for a four year private school, and $10,458 per year per child for a four year in state public school. This incudes tuition, room & board, supplies and transportation.